Sasol’s valuation may appear attractive on several metrics, but the company faces significant challenges that have dampened investor sentiment in recent years. The silver lining, however, lies in the potential solutions available to address these issues and unlock value.

Sasol’s flagship Secunda facility, which underpins much of its South African operations, has been plagued by poor coal quality feedstock. The declining quality of domestic coal reserves affects operational efficiency and output while increasing costs...

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